Last Word: Long $AMZN

A recent study has shown that 39% of Target shoppers love Amazon Prime. With nearly two years of gains lost in the last month, Target has become another major retailer on the heels of a consumer shift in purchasing. To add to this shift, Amazon is aware that Target shoppers have become the low hanging fruit for marketing ROA efficacy. In short, compared to typical U.S. Adult, Target shoppers are more likely to consider prime than general population or Wal-Mart shoppers.

Target are likely to see more Amazon Prime ads in the coming months. It seems that visitors will be…targeted…for holiday ad campaigns in the coming months, as Amazon continues to trounce its competition in the consumer packaged goods space. This is as basic as using Foursquare and/or Facebook’s locational data to bolster Prime signups.

This also lends to the theory that Amazon will begin carrying / acquiring retail brands (because 📈 gross margins) to appeal to shoppers who want to use Amazon for all of their needs. Target isn’t the only major retailer that is seeing attrition of their more-affluent shoppers at the hands of Amazon.com. Target’s greatest increases in digital and foot traffic are Black Friday or collaboration related (Lily Pulitzer, etc).